The Environment Agency estimates that 5.2 million homes and businesses in England are at risk of flooding. Unfortunately, many homeowners are oblivious to the risks of severe water damage. What protection do you need?
Wetter and wilder
The Met Office’s UK climate projections show that climate change will cause more extreme weather events and sea level rises in the not-so-distant future. In 2023, spring has already brought snow and wintry showers to the UK, with flood warnings announced in parts of Derbyshire, Hampshire and Lincolnshire.
It is important that homeowners think about their protection and how they would respond to an extreme flood event. But research shows that some 12% of people have no idea whether they live in a flood risk area1.
What is flood insurance?
The good news is that, in most cases, you don’t need a specific flood insurance policy. Most buildings insurance policies cover flood damage up to the rebuild value of your home, while you can protect your belongings with contents insurance (insurers may provide cover for vulnerable properties through the Flood Re scheme.) If your home is fully protected and happens to be severely damaged by a flood, you’ll be able to claim on your home insurance policy to pay for the necessary repairs and replace your personal possessions. Each policy is different, however, so it’s always a good idea to check the details of your specific plan.
Flood risk
The Great British weather is predictably unpredictable. For homeowners, it might not be possible to control the elements – but you can make sure you have the right protection in place to lessen the damage should the worst happen.
1Environment Agency, 2020
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.